GAZOTC – a decentralized OTC platform based on legal tender transactions
Trust is the foundation of financial industry. In order to maintain trust, the development of financial industry has spawned a large number of intermediaries with high cost, low efficiency and single point of failure, including custodians, third-party payment platforms, notaries, banks, exchanges and so on. Blockchain technology uses brand-new encryption and authentication technology and decentralized consensus mechanism to maintain a complete, distributed and unchangeable account data, so that participants can ensure the security of funds and information through a unified account book system without mutual cognition and trust relationship. This is great significance to financial institutions.
Nowadays, Visa, Master and Alipay are all operated by centralized institutions, and currency transfer has to go through third-party institutions, which makes the cost of cross-border transactions, currency exchange rate, internal accounting and time consumption is high, and brings risks to users. Blockchain can simplify and automate the lengthy financial service process, reduce the interaction between foreground and background, and save a lot of manpower and material resources, which is great significance for optimizing the business process of financial institutions and improving the competitiveness of financial institutions.
Third-party payment and OTC, as the entrance of Internet economy, have helped many industries such as consumer finance and air tourism to achieve transformation and upgrading in the past by virtue of scene penetration and data precipitation, and also met the increasing diversified needs of users under the background of consumption upgrading, thus becoming the driving force in the innovation of economic and industrial structure.
The DeFi market broke out in 2020, and once the decentralized exchange (DEX) based on currency trading business was launched, it was supported and recognized by blockchain users. In 2020, the Uniswap agreement supported more than $58 billion in transactions, up 15,000 % from $390 million in 2019.
However, behind the DeFi boom, there is still a big gap between Dex trading volume and centralized exchange trading volume. Gaz team believes that the reason is that Uniswap only provides blockchain users with the infrastructure for currency transactions. However, OTC transactions, as the connector between blockchain assets and legal tender assets, are still controlled in centralized exchanges. OTC is the gateway for users to enter the blockchain world and the entrance for traffic. Without an excellent dentralized OTC product, it is difficult for DeFi market to usher in a real outbreak. The blockchain world woud continue to be firmly controlled by centralized exchanges, and users’ asset freedom will never be realized.
Therefore, DOTC is a new track of Defi ecology, and Gaz technical team first proposed – GAZOTC, a decentralized OTC platform based on legal tender transactions.
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Company Name: GAZOTC
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Country: United States
Website: GAZOTC.com
